The portfolio management fee of 0,70% is presented as an annual rate, but calculated and debited from portfolios monthly.
The 0,70% fee is applied each month divided by 12, so 0,05833%.
The monthly euro value of your portfolio is determined by the average calendar daily value of such portfolio during the given month. This way you are not penalized when sending new funds at the end of the month. We update the portfolio’s value once every business day based on the daily price of the funds inside your portfolio, meaning the daily price will fluctuate due to market movements, plus any cash balance.
The monthly euro value is then multiplied by 0,05833%. This is how we arrive at the fee euro amount to be debited from your portfolio.
The fee is debited from the next month’s contribution. If no contribution is made within three months, we will sell a portion of the portfolio equal to the owed fees.
The value of your portfolio on June 1st is €200. You and your employer then contribute another €200 on June 16th, increasing the value to €400. The portfolio value will fluctuate every day based on market movements, but for simplicity’s sake in this example, let’s assume there are no market movements. As your portfolio value was €200 for the first half and €400 for the second half of June, your average daily value for the month is €300.
The value of €300 is then multiplied by 0,05833% to arrive at the monthly fee of €0,18.
The €0,18 fee is debited from the contribution made in July.
How is the fee calculated for the month when I sell my portfolio?
If you instruct a full sale of your portfolio, we will debit the fee applicable to that month from the sales proceeds (net proceeds). The monthly euro value for your portfolio during that final month is determined by the average calendar daily value of such portfolio during the given month, applying a euro value of zero for the days in which the portfolio contained no assets.
If a partial portfolio sale is instructed, we will calculate whether the remaining assets are large enough to likely cover that month’s fee. If the remaining assets are unlikely to cover the fee, we will deduct the fee from the partial sale proceeds.
Unless otherwise agreed, the employee is responsible for paying the fee from his/her share of the portfolio and the employer is responsible for paying the fee from its share of the portfolio (based on the proportional amount contributed by each party into the portfolio).